Golden Ratio of Mapping Idea and Literature Format
Vol. 5 No. 2 (2025): February - June

The Influence of Organizational Culture and Compensation on Employee Performance Through Employee Job Satisfaction

Nurrachmi Mustafa (STIEM Bongaya)
Muh. Akob (STIEM Bongaya)
Edy Jumady (STIEM Bongaya)



Article Info

Publish Date
30 Jun 2025

Abstract

This study examines the influence of organizational culture and compensation on job satisfaction and employee performance among administrative staff at the Faculty of Engineering, Hasanuddin University. Using a quantitative explanatory research design, data were collected from 93 employees through a structured questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that both organizational culture and compensation have positive and significant effects on job satisfaction. However, organizational culture does not directly affect employee performance; instead, its impact is fully mediated by job satisfaction. Conversely, compensation demonstrates both direct and indirect significant effects on performance. Job satisfaction itself shows a strong positive relationship with employee performance, underscoring its essential role in enhancing work outcomes. These results contribute to the theoretical understanding of human resource management by confirming the mediating role of job satisfaction and emphasizing compensation as a key driver of employee performance. Managerially, the study highlights the need for strengthening cultural values, improving compensation systems, and enhancing non-financial work conditions to foster satisfaction and performance. Despite its contributions, the study is limited by its cross-sectional design, single institutional setting, and reliance on self-reported data. Future research should explore broader institutional contexts and include additional organizational behavior variables to enrich the understanding of performance determinants.

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Journal Info

Abbrev

grmilf

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Library & Information Science Social Sciences

Description

The Golden Ratio of Mapping Idea and Literature Format (GRMILF) is the first innovative journal in the world that collects and resumes prior research / recent studies. The Golden Ratio of Mapping Idea and Literature Format (GRMILF) aims to make it easier for global readers to get and read resumes ...